Boskalis Further Cuts Stake in Fugro

After the last week’s announcement that Royal Boskalis Westminster reduced its holding in Fugro to 24.9%, the Dutch dredging, maritime and offshore company informed this morning that it further cut its stake in Fugro to 9.38%.

Peter Berdowski, CEO Boskalis: “During the presentation of the half year results, we indicated that we would reconsider our position in Fugro. Despite our conviction that parts of Fugro fit very well with Boskalis, we recently decided to sell down our Fugro holding in steps.”

“This decision is on the one hand based on the uncertain market conditions which continue to prevail much longer than anticipated and on the other hand also the position of the Fugro management. Through the gradual sell down we have taken away uncertainty in our own share and we expect to create more value for our shareholders going forward.”

The reduction to 9.38% was accomplished through an accelerated bookbuild via which 12,685,878 (15%) certificates of shares in Fugro were placed with institutional investors at EUR 14.50 per share. The bookbuild commenced yesterday after closing of Euronext Amsterdam.

In relation to this transaction, Boskalis agreed to a 90-day lock-up period during which it may not dispose of shares in Fugro, subject to the agreement with the Joint Bookrunners. Kempen & Co and Goldman Sachs acted as Joint Bookrunners for this transaction.

In its 2015 annual report, Boskalis stated that it held 28.6% of Fugro’s shares per 31 December 2015.

Last year, Boskalis said that Fugro is “an interesting company with strong market positions in its core activities”, adding that Fugro’s activities fit very well with the focus of Boskalis’ business strategy. However, Fugro denied that amount of similarity between the two businesses.

In March 2015, Boskalis acquired 25.14% Fugro’s shares, which triggered a legal dispute between the companies after Boskalis wanted to have a shareholders’ vote on one of Fugro’s measures protecting it from a hostile takeover. The District Court of The Hague then ruled in favour of Fugro.

In May 2016, the Court of Appeal in The Hague also dismissed Boskalis’ claim and ruled in favour of Fugro.